Annual Technical Report MLN's 833, 856, 1109, ML's 27999, 31122 and MA's 398 - 402 Union Reefs Project Union Reefs Gold Mine Group Report GR192/11 16 August 2015 to 15 August 2016

Abstract

The Union Reefs Group of mineral leases consists of ten tenements: MA3 98, MA 399, MA 400, MA 401, MA 402, MLN 833, MLN 856, MLN 1109, ML 27999 and ML 31122. The leases are located approximately 170 km?s southeast of Darwin and 12 km north of the Pine Creek Township (Figure 1-1). Newmarket Gold Inc. acquired the leases on November 6, 2009, after purchasing the liquidated assets held by GBS Gold Australia Pty Ltd. The group of tenements also includes one of the only operating processing plants in the Northern Territory, which is a Gravity and Carbon-in-leach plant which processes gold from the Cosmo Deeps Mine site. The group of tenements are situated within the Pine Creek Orogen (PCO), a sequence of tightly folded rocks of Lower Proterozoic age which extends from Darwin in the north to Katherine in the south. It varies in thickness, from 10 km in some areas to 14 km in others, for a total area of 66,000 km. The area consists of rocks from the Burrell Creek and Mount Bonnie Formations, the known hosts of gold mineralisation in the district. In December of 2015, Mineral Claims 506, 507, 734 and 735 (Elizabeth) where identified as non-compliant existing interests, and were replaced by Mineral Lease 31122. Also towards the end of 2015, Newmarket Gold asked the Department of Mines and Energy to relinquish the Caroline leases, which consisted of Mineral Lease Northern's 51-57. The leases were replaced by Mineral Lease 27999, (Esmeralda), which also replaced Exploration Lease in Retention (ELR) 130. Also within the reporting period, Newmarket Gold lodged a mining application to the Department of Mines and Energy to mine Prospect Claim on MLN 1109.